Haiti politics: Quick View - Protests erupt over fuel price rises

Major protests have broken out across Haiti, following the implementation of unpopular fuel price rises at the end of June. Although the government moved to suspend the price increases in response, the protests have yet to come to a halt.

Analysis

The first round of protests broke out on July 6th in the capital, Port‑au‑Prince, and quickly spread across the country, leaving three dead amid violent demonstrations, roadblocks and sporadic looting. The protests were in response to fuel price increases, announced in May, that saw gasoline prices rise by 38%, diesel by 47%, and kerosene by 51%.

Fuel price increases are politically sensitive because they impact all sectors of Haitian society, through rising transportation costs and higher costs for heating and cooking. Such a sharp increase in energy costs, at a time when annual inflation is at double‑digit levels (12.7% in May), would further erode consumers' already weak purchasing power (Haiti's per‑head income is the lowest in the Western Hemisphere). It is for this very reason that previous efforts to raise fuel prices via the retrenchment of subsidies have been unsuccessful.

The most recent protests have had the same outcome, with the president, Jovenel Moïse, announcing on July 7th that the fuel price increases would be suspended indefinitely. The policy reversal highlights the weakness of the ruling party in a context in which voters frequently take to the streets to influence policy, and can threaten to oust the government.